Minimum Wage
Issue Overview: The unions and special interest groups are behind Proposition 202 -- a poorly written, ill-defined proposition disguised as a minimum wage initiative. This initiative is four-pages long with over 2,000 words. Think that this is just an increase in the minimum wage… think again!
What every small-business owner should know about Prop. 202 before they cast their vote Nov. 7:
- Under this act, the state and federal government will be exempt from having to pay this new minimum wage rate.
- Under this act, the minimum wage will increase every year, even if the employee has not earned the raise or the small business can't afford it. The increases will be tied to the Consumer Price Index.
- Under this act, a new bureaucratic commission will be created. This new commission will be appointed by the governor, but have no oversight by the Legislature or voters. This ill-defined proposition does not outline how many people will be appointed to the commission or the length of their terms. This new bureaucracy will have the ability to write their own rules with no oversight by the legislature or voters.
- Privacy issues. Who's looking at your business records? Besides the bureaucrats, anyone will have the opportunity to look at an employer's payroll records. This could mean that unions, trial attorneys, former employees and even your competitor could look at those records and get names, addresses, salaries, benefit information and Social Security numbers of your employees!
- Slaps the American legal system in the face. Small-business owners are guilty until proven innocent. Even criminals of heinous crimes are innocent until proven guilty!
- There is absolutely no small-business exemption. Don't believe the proponents' hype. Unless your business is in the American Samoa or other U.S. territory, your small business is included in this initiative. (NFIB has a full analysis of this supposed exemption available for members to view.)
- Gives cities and towns more power. Under this act, cities and towns will have the authority to create their own minimum wage, requirements and bureaucratic commission. And by the way, the highest wage rate will apply to your business.
- Any person can file a complaint against your business. Under this act, unions, trial attorneys, your neighbor, anyone can file a complaint against your small business. They can say they are representing an accuser and start the complaint process through the new commission, as well as through the court system.
- If this act hinders or shuts down commerce in Arizona, only the voters can repeal this act. Should this act be approved by the voters in November, only the voters will have the authority to repeal this act. The governor and Legislature have no authority to repeal this act.
NFIB Position: By a 6-to-1 margin, NFIB/Arizona members are opposed to enacting a state minimum wage. NFIB opposed Proposition 202 during the 2007 election season.
Issue Status: On Nov. 7, Arizona voters approved Proposition by 2 to 1. The new law goes in to effect Jan. 1, 2007. Proposition 202 is voter-protected and can't be repealed or significantly altered without additional voter approval.
